The company is raising funds via a share placing and subscription at 1.5p a share
The subscription offer will be conducted via the platform.
The money raised by the share issue will be used to support the company’s sustainable growth model, accelerate progress in existing markets, fund the entry into new markets and enhance the group’s capacity and capabilities.
EQTEC revealed that it intends to enter into a settlement and termination agreement with Syngas Technology Engineering, a company wholly owned by Yoel Alemán, the inventor of EQTEC’s gasifier technology who is a director on the EQTEC board.
Syngas is entitled to an ongoing royalty on sales of EQTEC’s gasifier technology up to and until a cumulative maximum of €2.88mln has been received by Syngas; thus far, Syngas has received €436,000 under these royalty arrangements.
Under the terms of the settlement, Syngas will receive a cash payment of €1mln plus €1.44mln in EQTEC shares (92.98mln shares).
In addition to the current patents held in the name of EQTEC, Yoel Alemán will undertake to develop and file additional patents on behalf of EQTEC as and where required by the company for a period of five years, EQTEC said.
The announcement also contained the news that the company’s finance director, Gerry Madden, is to retire this year. EQTEC is already seeking his successor and once it makes an appointment it has been agreed that Madden will stay on for a while to enable an orderly transition.
“Gerry was finance director at the initial admission of the company in 2008 and served as CEO between 2011 and 2018, after which he resumed the role of finance director and company secretary,” said David Palumbo, the chief executive of EQTEC.
“He steered the group through its start-up days, the credit crunch of 2008, the ensuing recession and on to the successful acquisition and integration of EQTEC Iberia. We thank Gerry for his loyalty, care and attention to the group over the longest tenure of anyone in the company,” Palumbo said.
Read More: EQTEC PLC to raise funds to accelerate growth